Abstract: The third stage alternative site of oil reserve base in China is of relatively better geographical and geological conditions, storage and transportation conditions of allocation, and security and reliability. Among them, Dingyuan Oil Storage with a capacity of 500×104 m³ will be planned to build with a construction period of 8-year; Zhaoji Oil Storage with a capacity of 500×104 m3 will be planned to build with a construction period of 10-year; Zhoutian Oil Storage with a capacity of 10×106 m3 will be planned to build with a construction period of 10-year. Ground supporting projects of the underground salt cavern oil storage include four construction parts: water pumping stations and water pipelines, brine stations and brine pipelines, injection stations and crude oil transportation pipelines. Optimal selection and economic feasibility analysis on the three oil storage sites have been done through the cost present value method and the cost annual value method from the perspective of economic evaluation. Based on minimum cost criteria, Dingyuan Salt Cavern can be set as the preferred storage site at present, and Zhaoji Salt Cavern can be set as follow-up project. Besides, Zhoutian Salt Cavern can be used as the long-term planning for building oil storage project.